Training for the Urban Unemployed: A Reevaluation of Mexico's Training Program, Probecat
For many years the government of Mexico has implemented a large training program for the unemployed. The program has been evaluated twice before with similar methodologies. These two evaluations yielded encouraging results in that the program apparently reduces unemployment and increases earnings. This article suggests that both evaluations may suffer from inappropriate controls for the endogeneity of program participation. Using the availability of the program at the state level as a determinant of individual participation, the article uses the data of the second evaluation to indicate that Probecat does not decrease unemployment, nor does it increase wages.
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